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The
Kodiak jail and police station project has hit yet another snag. City Manager
Linda Freed informed the city council at last night’s work session that the
estimated price tag for the facility has soared to 22-point-8 million dollars,
about twice the projected cost from less than a year ago.

Freed said most of
the increase results from the site that the city council approved in
February--a lot on Mill Bay Road roughly across the street from Cost Savers--as
well as the rising cost of steel and other construction materials.

(Jail
1:31s“…that’s
the additional cost.”)

Freed
added that the city does not have the money to pay for the increased costs
without going out for additional general obligation bonds. And in order to
finance payment of the bonds, she suggested that the city raise its sales tax
on alcohol, from six cents per dollar to 10 cents per dollar.

(Jail
2:24s“…or
other basic necessities.”)

But
she admitted that it could open another whole can of worms for the city.

(Jail
3:15s“…liquor
industry would sue us.”)

Freed
argued that it would be worth the risk, citing a recent state Supreme Court
decision in which a similar sales tax hike on alcohol in Fairbanks was upheld.

An
hour-long discussion by the city council included a lot of finger pointing
about why the project was costing so much more than originally estimated. Just
about the only thing council members could agree upon was that no one wanted to
see taxes raised. Councilman Tom Walters:

(Jail
4:18s“…because
of the price of fuels.”)

The
city council could choose to raise taxes without putting it to a vote of the
people. Deputy Mayor Gabriel Saravia--who chaired the meeting the absence of
Mayor Carolyn Floyd--said it was an option for the council to consider.

(Jail
5:17s“…we
not need to be here.”)

Because
the timeline for putting a bond ordinance and sales tax increase on the October
municipal election ballot is short, the council will hold a special meeting
July 10th to consider its options. It asked Freed to consider other
possible solutions, including an increase to the sales tax for all goods. At
the July 10th meeting the council is expected to pick its preference
for moving the project forward and pass it in first reading to move forward to
a second reading at its July 24th regular meeting.